senate Bill S6324A

2011-2012 Legislative Session

Repeals provisions requiring wholesalers of alcoholic beverages to submit an annual report to the commissioner of taxation finance relating to sales tax collection

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 31, 2012 reported and committed to finance
Mar 09, 2012 print number 6324a
amend (t) and recommit to investigations and government operations
Jan 26, 2012 referred to investigations and government operations

Votes

view votes

May 31, 2012 - Investigations and Government Operations committee Vote

S6324A
5
1
committee
5
Aye
1
Nay
1
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: May 31, 2012

nay (1)
aye wr (1)
excused (1)

Bill Amendments

Original
A (Active)
Original
A (Active)

S6324 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld §1136 sub(i) ¶1 sub¶ (C), Tax L

S6324 - Bill Texts

view summary

Repeals provisions requiring wholesalers of submit an annual report to the commissioner of taxation and finance relating to sales tax collection.

view sponsor memo
BILL NUMBER:S6324

TITLE OF BILL:
An act to amend the tax law, in relation to exempting certain
wholesalers of beer from the requirement of filing annual information
returns for purposes of sales taxes

PURPOSE:
Exempts certain beer wholesalers, authorized to sell beer at retail,
from the filing of additional information returns with the Department
of Taxation and Finance.

SUMMARY OF PROVISIONS:
Section one amends Subparagraph (C) of paragraph 1 of subdivision (i)
of section 1136 of the tax law, as added by section 1 of subpart G of
part V-1 of chapter 57 of the laws of 2009

JUSTIFICATION:
This bill would exempt a very small category of businesses from the
2009 amendments to the tax law that require all wholesalers of
alcoholic beverages (liquor and beer) to file electronic annual
information returns, including extensive and detailed information
about each sale of alcoholic beverages where no sales tax is collected
(i.e., sales to retail vendors), including:

* the vendor's name (legal entity name);

* the vendor's DBA (if different from legal entity name);

* the vendor's New York State Liquor Authority License Number (SLA
);

* the total monthly sales of alcoholic beverages to each vendor
(exclusive of total amounts for deposit and returns);

* the month and year of sales reported;

* the vendor's phone number;

* the vendor's address as it appears on its SLA license;

* The vendor's Federal Identification Number (EIN), which is the
vendor's Social Security Number if vendor is a sole proprietorship;
and

* The vendor's New York State Sales Tax Certificate of Authority
Number.

The 2009 amendment also requires wholesalers to give each vendor a
statement showing the same information reported for that vendor on the
information return. Penalties for failure to collect the information
or to file electronic returns can range up to $10,000.

The new reporting requirement works quite well for major liquor
wholesalers and giant franchised beer wholesalers, all large
businesses with easy access to technology and accounting
professionals. However, the 2009 amendment caught up in its net of


detailed electronic recordkeeping and internet-only returns a
relatively tiny group of C-licensed beverage centers, typically small
neighborhood businesses that hold wholesale beer licenses with
off-premises retail privileges.

Many of the surviving C Licensed beverage centers are small,
multi-generational "mom and pop" operations that use written invoices
and receipts, often as many as three to four-hundred a day. The 2009
amendments require them to compile the information from many different
paper sources, often at great cost, for businesses that are just
barely surviving to stay open.

The impact of the exemption proposed in this bill on state tax
operations would be minimal. Of the 300 or so surviving C licenses,
many do exclusively retail business. Others do minimal wholesale
business, typically serving accounts like taverns and bodegas in
neighborhoods the franchised wholesalers regard as uneconomical or
serving as a fill-in source on evenings or weekends when the
franchised wholesalers are closed. To further minimize the impact, the
exemption would not apply to a C Licensee that is a franchised
wholesaler, unless the franchised brand represents a tiny segment of
the market.

This bill would give a small break to hard-pressed neighborhood
family-run businesses already nearly regulated out of existence by
freeing them from onerous, complex and expensive reporting
requirements. Beverage centers would still keep records, which would
be available to the state on request, as it was prior to the 2009
amendments.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
January 1 next succeeding the date after it becomes law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6324

                            I N  S E N A T E

                            January 26, 2012
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  exempting  certain  whole-
  salers  of  beer  from  the  requirement  of filing annual information
  returns for purposes of sales taxes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subparagraph  (C)  of  paragraph  1 of subdivision (i) of
section 1136 of the tax law, as added by section 1 of subpart G of  part
V-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (C)  Every  wholesaler,  as  defined by section three of the alcoholic
beverage control law, if it has made a sale of an alcoholic beverage, as
defined by section four hundred twenty of this chapter, without collect-
ing sales or use tax during the period covered by the return, except (i)
a sale to a person that has furnished an exempt organization certificate
to the wholesaler for that sale; or (ii) a sale  to  another  wholesaler
whose license under the alcoholic beverage control law does not allow it
to  make retail sales of the alcoholic beverage. For each vendor, opera-
tor, or recipient to  whom  the  wholesaler  has  made  a  sale  without
collecting  sales  or  compensating use tax, the return must include the
total value of those sales made during the period covered by the  return
(excepting  the sales described in clauses (i) and (ii) of this subpara-
graph) and the vendor's, operator's or recipient's state liquor authori-
ty license number, along with the information required by paragraph  two
of this subdivision.  PROVIDED, HOWEVER, THAT THE REPORTING REQUIREMENTS
OF  THIS  SUBDIVISION  SHALL  NOT  APPLY TO THE HOLDER OF A WHOLESALER'S
LICENSE ISSUED OR RENEWED, PURSUANT TO SECTION FIFTY-THREE OF THE  ALCO-
HOLIC BEVERAGE CONTROL LAW, PRIOR TO JULY FIRST, NINETEEN HUNDRED SIXTY,
AND  WHOSE  LICENSE  WAS  THEREAFTER  RENEWED  OR  TRANSFERRED WHEN SUCH
LICENSE AUTHORIZES THE HOLDER THEREOF TO SELL BEER  AT  RETAIL  FOR  OFF
PREMISES CONSUMPTION AND WHEN SUCH HOLDER IS NOT A PARTY TO AN AGREEMENT
OR  AGREEMENTS  WITH A BREWER, AS DEFINED IN SECTION FIFTY-FIVE-C OF THE
ALCOHOLIC BEVERAGE CONTROL LAW, WHICH PROVIDES FOR THE SALE OF MORE THAN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13604-01-1

S. 6324                             2

ONE-HALF OF ONE PERCENT OF THE TOTAL WHOLESALE GROSS SALES OF  BEER  AND
MALT  BEVERAGES  IN  THE STATE DURING THE IMMEDIATELY PRECEDING CALENDAR
YEAR.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

Co-Sponsors

S6324A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld §1136 sub(i) ¶1 sub¶ (C), Tax L

S6324A (ACTIVE) - Bill Texts

view summary

Repeals provisions requiring wholesalers of submit an annual report to the commissioner of taxation and finance relating to sales tax collection.

view sponsor memo
BILL NUMBER:S6324A

TITLE OF BILL:
An act
to repeal subparagraph (C) of paragraph 1 of subdivision (i) of section
1136 of
the tax law relating to the submission of annual information reports
with the commissioner of taxation and finance by wholesalers of alcoholic
beverages for purposes of sales tax collection

PURPOSE:
Repeals provisions requiring wholesalers of alcoholic beverages to
submit an annual report to the commissioner of taxation finance
relating to sales tax collection.

SUMMARY OF SPECIFIC PROVISIONS:
Section one repeals Subparagraph (e) of paragraph 1 of subdivision (i)
of section 1136 of the tax law.

Section two is the effective date.

JUSTIFICATION:
This bill would repeal Subsection (C) of paragraph 1 of subdivision
(i) of section 1136 of the tax law requiring wholesalers to the
submit annual information reports with the commissioner of taxation
and finance, including extensive and detailed information about each
sale of alcoholic beverages where no sales tax is collected (i.e.,
sales to retail vendors), including:

* the vendor's name (legal entity name);

* the vendor's DBA (if different from legal entity name);

* the vendor's New York State Liquor Authority License Number
(SLA
);

* the total monthly sales of alcoholic beverages to each vendor
(exclusive of total amounts for deposit and returns);

* the month and year of sales reported;

* the vendor's phone number;

* the vendor's address as it appears on its SLA license;

* The vendor's Federal Identification Number (EIN), which is the
vendor's Social Security Number if vendor is a sole proprietorship; and

* The vendor's New York State Sales Tax Certificate of Authority Number.

By repealing this section of law, the unnecessary administrative burden
placed on small businesses would be removed. The requirement stunted
economic growth at a crucial time in our state's economy. By removing
this barrier employment will no longer be hindered due to this costly
administrative burden. This bill would give a break to hard pressed


businesses which are heavily regulated by freeing them from onerous,
complex and expensive reporting requirements.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6324--A

                            I N  S E N A T E

                            January 26, 2012
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to repeal subparagraph (C) of paragraph 1 of subdivision (i) of
  section 1136 of the tax law  relating  to  the  submission  of  annual
  information  reports  with the commissioner of taxation and finance by
  wholesalers  of  alcoholic  beverages  for  purposes  of   sales   tax
  collection

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph (C) of  paragraph  1  of  subdivision  (i)  of
section 1136 of the tax law is REPEALED.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.







 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13604-02-2

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.